Buying or selling a property can be a complex process full of potential obstacles. Often, a transaction that seems certain can fall through at the last moment, causing frustration for both parties involved. Knowing the common reasons behind these setbacks and being prepared to handle them can avoid disappointment and legal problems.
Main Reasons for Failure in Property Sales
Mariano Esper, a lawyer specializing in real estate law, points out several common reasons that can lead to the failure of a sale:
- Difficulties in Obtaining Mortgage Credit:In countries such as Argentina, the scarcity of accessible mortgage credit and the lack of an adequate regulatory framework for banks can be significant barriers.
- Precautionary Measures:Foreclosures or inhibitions that affect the property can paralyze the sale, generating uncertainty.
- Delays in Administrative Procedures:Bureaucracy and delays in obtaining essential documents can prolong the process and cause buyers to lose interest.
- Complications in Estate Sales:Disputes between heirs or delays in court proceedings can block the sale.
- Lack of Spousal Consent:If the law requires the consent of the spouse or cohabitant and it is not given, the sale cannot proceed.
Keys to avoid a failed sale
Seller's Obligations
To avoid problems, the seller must comply with several key obligations:
- Delivery of the Property:The property must be delivered in the agreed state, free of occupants if agreed. Failure to comply may result in legal action by the buyer, including termination of the contract and claims for damages.
- Warranties:The seller must guarantee that the buyer can enjoy the property without interference (guarantee of eviction) and ensure that there are no hidden defects in the property (guarantee for redhibitory defects).
- Maintain the Agreed Price:The price agreed in the sales contract must be respected. Any attempt to modify it may allow the buyer to withdraw from the transaction.
Buyer's Obligations
The buyer also has essential responsibilities:
- Pay the Agreed Price:The buyer must comply with the payment in the agreed time and manner. Failure to pay may lead to the termination of the contract.
- Show Up on Time:The buyer must be available on the date of the deed to sign and receive the keys to the property.
- Cover the Deed Fees:The buyer is responsible for the notary's fees and other recording costs.
Role of the Real Estate Agent
The real estate agent plays a crucial role in the process. He or she must ensure that the property is free of legal issues before listing it for sale. This includes verifying ownership, restraints, and the need for spousal consent. If these precautions are not taken, the sale can fail, causing losses for all parties.
Cláusulas de Penalización
To ensure compliance with the contract, penalty clauses are put in place. If the buyer defaults, he or she may lose the deposit provided. If it is the seller who defaults, he or she must return the deposit along with additional compensation.
Conclusion
Avoiding a property sale from falling through requires attention to detail and strict adherence to legal obligations. Both sellers and buyers must be well informed and prepared to handle any eventuality. Having a competent real estate agent is also essential to navigate the process smoothly. By taking these precautions, you can minimize the risk of a real estate transaction falling through and ensure a smoother, more satisfying process for everyone involved.
